People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This fact helps explain:
A. the wide variations of Gini ratios among nations.
B. the equality-efficiency trade-off.
C. why the lifetime distribution of income is more equal than the distribution in any given year.
D. why the lifetime distribution of income is less equal than the distribution in any given year.
Answer: C
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Fiscal policy may not work as policymakers intend it to work because of
A) crowding out. B) lags. C) the position of the physical production possibilities frontier. D) a and b E) a, b, and c
Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate
a. increases, and the labor-force participation rate decreases. b. and the labor-force participation rate both increase. c. increases, and the labor-force participation rate is unaffected. d. and the labor-force participation rate are both unaffected.